If you have a job and a PF account, this news is essential for you. The ‘Covid Advance Facility’ from EPFO has been stopped.
In 2020, during the Corona pandemic, EPFO introduced the option to get money in advance for PF account holders.
It was started to help people access funds for things like medical treatment during the rising number of Corona cases.
The decision was taken in the meeting a week ago
As per the news in Economic Times, an EPFO official mentioned that the decision was made in a meeting held a week ago.
The officer also mentioned that the official notice about this hasn’t been given out yet. They expect to release the notice soon.
The news stated that they are getting ready to stop the non-refundable Covid advance option. After this happens, no one will be able to use this service.
EPFO took this decision quite late
Some experts mention that, other than for getting better, some folks spent the Covid money on things they didn’t really need.
They also said EPFO made this decision very late, and now EPFO doesn’t have as much money.
They haven’t officially said it yet, and Zee News hasn’t said it’s true. In 2020, during the big sickness worldwide, EPFO let its members take out money early from their PF account.
With this, you could take out some money that you don’t have to pay back.
It was up to three months’ basic pay and dearness allowance or 75 percent of what’s in your EPF account, whichever is less.
Just so you know, under EPFO, both the worker and the boss have to give 12 percent of the basic salary and dearness allowance.
Right now, the government gives 8.15 percent interest on the money you put into EPFO.
